**Adjustments for Change in Prior-Year Allocation of Budgetary Resources (SSA and HHS Related TAFS Only)**

### Background

The following scenario was developed to address specific accounting guidance for adjustments to the allocation of budgetary resources between certain funding sources and performing accounts.  It was developed based upon the request and guidance of OMB.  The specific TAFS involved are denoted below.  At this time, this guidance is not applicable to other TAFSs with limitations on administrative expenses.

Congress enacts appropriations each year for the SSA’s LAE account (28-FY-8704) and Program Management account (75-FY-0511), which are referred to herein as performing accounts.  The performing accounts are fiscal-year accounts.  The amounts appropriated are allocated among the various funding sources.  These funding sources are no-year trust funds managed by the Bureau of the Fiscal Service (20X8004, 20X8005, 20X8006, and 20X8007), as well as one SSA general fund TAFS (28X0406).  Upon enactment of the appropriations, the performing accounts record a receivable (USSGL 4225), and the funding sources record a payable (USSGL 4901).

The amounts appropriated to the performing accounts are fixed; however, the amounts allocated among the various funding sources are not.  The actual charges may differ from the initial allocation.  Therefore, when the need exists for an adjustment to the initial allocations, there must be a corresponding upward and downward adjustment between the performing accounts and corresponding funding sources **except for** the SSA general fund TAFS (28X0406). 

· If the amount initially allocated to a particular funding source is increased, then the funding source should report new obligations and an adjustment (+) to the budgetary resources available for obligation.  A new P&F line (2333) and USSGL account (4320) will be established for this purpose.

· If the amount initially allocated to a particular funding source is decreased, then the funding source should report a recovery of prior-year obligations and a adjustment (-) to the budgetary resources available for obligation.  A new P&F line (2333) and USSGL account (4320) will be established for this purpose.

**Proposed New USSGL Account (Effective Fiscal 2006, Available for Early Implementation Fiscal 2005)**

In order to account for the adjustment and to support P&F line 2333, the following new USSGL account is proposed:

**Account Title**:Adjustment for Changes in Prior-Year Allocations of Budgetary Resources

**Account Number**:4320

**Normal Balance**:Either

**Definition**:  The amount of adjustments made for the change in the allocation of budgetary resources between certain trust fund and agency general fund funding sources and performing accounts. Use only with prior OMB approval. FACTS II normal balance assigned to this account is “debit”.

**Scenario Applicability**

Unless granted specific permission from OMB and Fiscal Service, only the following TAFSs may record the new USSGL account (4320) under the prescribed guidance.

Funding Sources:

20X8004  Federal Supplementary Medical Insurance (SMI) Trust Fund (HHS)

20X8005  Federal Hospital Insurance (HI) Trust Fund (HHS)

20X8006  Federal Old-Age and Survivors Insurance Trust Fund (SSA)

20X8007  Federal Disability Insurance Trust Fund (SSA)

28X0406  Supplemental Security Income Program (SSA)

Performing Accounts:

28-FY-8704  Salaries and Expenses, SSA (Limitation on Administration Expenses)

75-FY-0511  Program Management, CMS, HHS

**Scenario Format**

In order to illustrate the new USSGL account and concept of adjusting the allocation of budgetary resources, a table format was used.  The left column represents two individual funding sources:  20X8005 (HHS – HI) and 20X8004 (HHS – SMI).  The right column represents the performing account: 20-FY-8704 (SSA – LAE).  **Although the performing account represents one entity, it is split into two so that you can see the direct transfer relationship between it and the two funding sources, at the transaction level**.  **For reporting purposes, however, the SSA – LAE balances are combined.**

Additionally, the SSA – LAE performing account is a fiscal year account.  Year 1 reflects the SSA – LAE TAFS as an annual-year unexpired TAFS.  In year 2, that TAFS has expired.  Year 2 reflects transactions in the SSA – LAE TAFS as either expired or unexpired.  Refer to the specific transactions for details.

**Pictorial Representation**

# 1.Specific amounts are appropriated annually to the Performing Accounts.  These amounts are fixed (F).  The budgetary resources of these appropriated amounts will be derived from the various Funding Sources.

2.The appropriated amounts are allocated among the various Funding Sources, and a receivable/payable relationship is established between the Funding Sources (payable) and the Performing Accounts (receivable).  The amounts allocated among the various Funding Sources are **not fixed** (NF), and therefore, are subject to adjustment.

**Funding SourcesPerforming Accounts**

# 

USSGL Scenario   Year 1 (2004)

**Year 1 (2004)**

Year 1 (2004)

Year 1 (2004)

# Year 1 (2004)

Year 1 (2004)

Year 1 (2004)

**Year 1 (2004)**

Year 1 (2004)

**CLOSING ENTRIES**

Year 1 (2004)

**CLOSING ENTRIES (continued)**

Year 1 (2004)

**CLOSING ENTRIES (continued)**

Year 1 (2004)

**CLOSING ENTRIES (continued)**

Year 1 (2004)

Year 1 (2004)Budgetary Reports

Year 1 (2004)Budgetary Reports

Year 1 (2004)Budgetary Reports

Year 1 (2004)OMB Form and Content Statements

Year 1 (2004)OMB Form and Content Statements

Year 1 (2004)OMB Form and Content Statements

Year 1 (2004)OMB Form and Content Statements

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

# Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

# CLOSING ENTRIES

Year 2 (2005)

**CLOSING ENTRIES (continued)**

Year 2 (2005)

**CLOSING ENTRIES (continued)**

Year 2 (2005)

**CLOSING ENTRIES (continued)**

Year 2 (2005)

**CLOSING ENTRIES (continued)**

Year 2 (2005)

**CLOSING ENTRIES (continued)**

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)

Year 2 (2005)OMB Form and Content Statements

Year 2 (2005)OMB Form and Content Statements

Year 2 (2005)OMB Form and Content Statements

Year 2 (2005)OMB Form and Content Statements

20X8004

20X8005

20X8006

20X8007

28-0406

($25-NF)

28-FY-8704

($50-F)

75-FY-0511

($50-F)

($25-NF)

($25-NF)

($10-NF)

($15-NF)

� OMB and Fiscal Service worked together in determining the proper accounting and reporting treatment of this activity.  The background narrative herein contains direct excerpts from OMB’s paper entitled, “Program Management, HHS and Limitation on Administration Expenses (LAE), SSA – Recording Transactions with Funding Source Accounts” .

�  For the SSA general fund TAFS (28X0406), the budgetary treatment is different because (1) the annual appropriation includes budget authority in payments to the trust activity to reimburse the trust funds for SSI administrative expenses and (2) it is authorized to carryover unobligated balances from fiscal year to fiscal year.

� For presentation purposes only, from this point on in this scenario, the SSA-LAE TAFS transactions, trial balances and reports in this presentation are combined, and do not distinguish between the expired and unexpired fiscal years.  In actual practice, separate ledgers must be maintained.

� Note:  Expired amounts are crosswalked to the P&F on line 7240 and below.

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Modified 8-17-06 to include footnote #2 on page 1 ~~6/14/2005~~